The FCC and DOJ settled with Verizon over possible E-rate competitive bidding violations. The telco agreed to pay $17.325 million to the USF and $354,634 to the U.S. Treasury to resolve parallel investigations, said a commission release Tuesday. Commissioner Mignon Clyburn dissented, citing "over $50 million in harm." The company responded that New York City Department of Education consultant Ross Lanham was at fault, engaged in fraud without the telco's knowledge and the company worked to return money to the program.
Alaska Communications pressed the FCC on a rural healthcare telecom connectivity funding "crisis." The telco repeated "concerns about the resolution of Funding Year (FY) 2016 rural health care (RHC) funding requests, the likelihood of an even greater -- substantially greater -- funding shortfall in FY 2017, and the detrimental and immediate impact this is having on the delivery of health care in rural parts of Alaska," said a filing posted Friday in docket 16-46 on meetings with aides to all five commissioners. The telco urged the commission to craft near-term and long-term solutions that would include "increasing the budget for RHC support, reducing delays in processing funding requests, and updating the rules to accommodate advanced service delivery." It also made several other filings, including on a petition for reconsideration on high-cost USF support in docket 10-90 (here) and VoIP service regulatory classification in docket 17-108 (here)
The Alaska Telephone Association asked the FCC to reconsider "mapping reporting" duties imposed by the Wireline and Wireless bureaus on participants under a commission "Alaska Plan" USF order to boost broadband (see 1608310067). ATA said it respected the order's "limited data collection and reporting requirements" on middle-mile connections to give the agency information on participant compliance with performance commitments and other requirements. But the bureau details "go beyond what is needed" and "are not appropriately tailored to the relatively simple task of ascertaining the nature of middle mile facilities" connecting communities to the internet backbone, said a petition posted Wednesday in docket 16-271, following the group's recent concerns to commissioners and staffers (see 1710040061). It said the collection includes "many last mile facilities ... no matter how small" that "are not relevant" to middle-mile connectivity. The duties would "be extremely expensive and burdensome," requiring all locations to "be measured and links described to within 7.6 meters of accuracy, which in most cases will require a site visit and survey." A March 1 deadline is also unrealistic, given Alaska's geography and winter conditions, it said.
The Nevada Public Utility Commission voted 3-0 to adopt a state USF order meant to simplify the process for requesting high-cost support for small scale providers of last resort (SSPLR). "Previously, eligible providers would file an annual request for support that amounted to a mini rate case proceeding, which was burdensome on both the SSPLR and Staff," the draft order said. Under the new process, the commission would set an NUSF support amount for five years subject to limited annual adjustment to account for fluctuations in federal USF support. The action makes permanent the new method, which the PUC adopted on a temporary basis in April. “This amendment to the regulations helps streamline the process to ensure that there is equity” service between rural and urban areas, PUC Chairman Joseph Reynolds said at the livestreamed meeting.
Most rural telcos on an FCC list disputed they faced blanket unsubsidized competition despite preliminary agency findings that, if verified, could subject them to a phasedown in high-cost USF support. Using 2016 Form 477 industry data, the FCC listed 13 rural telcos with study areas where unsubsidized rivals "potentially" offered qualified broadband and voice service to 100 percent of locations in relevant census blocks (see 1708110049). Blanchard Telephone, Beresford Municipal Telephone, Faith Municipal Telephone, Farmers Telephone, Home Telephone and Winn Telephone made filings posted Tuesday and Wednesday in docket 10-90 contesting they were subject to 100 percent competitive overlap. Bascom Mutual Telephone and Monon Telephone (plus Home) made rebuttal filings in September. Despite the invitation to comment, few competitors made filings, and those that did denied or qualified their competitive overlap. Golden West Telecommunications said it didn't compete with Faith, despite being listed as the only qualifying competitor, and Comcast (here) and CenturyLink (here) said they didn't offer service to all locations in relevant census blocks. In 2015, the FCC found only one rural telco, Pineville Telephone, was ineligible for continued USF support based on 100 percent competitive overlap, after citing 15 on its preliminary list (see 1512140052). Seven of the RLECs on the 2017 preliminary list -- including all five that apparently didn't make filings -- were also on the 2015 preliminary list.
The author of Texas’s small-cells law said he never meant to spur regulatory-regime shopping by wireless infrastructure companies. Senate Business and Commerce Committee Chairman Kelly Hancock (R) countered arguments by ExteNet and Crown Castle in a letter to the Public Utility Commission sent the day before commissioners were to discuss a controversial proceeding about PUC authority over wireless network nodes in the right of way (ROW). Commissioners chose not to discuss the wireless item at their Wednesday meeting, but approved two other items on the state USF.
Industry generally urged the FCC to streamline Form 477 data reporting duties for broadband and voice providers and be cautious about adding new requirements, particularly if costly. Many backed moving from twice-a-year to annual filings and resisted collection of more granular data, while a few took contrary views. Comments were posted Tuesday and Wednesday in docket 11-10 on a Further NPRM seeking to make industry data, which is used for USF, more useful while scrapping unnecessary burdens (see 1708030026).
The National Hispanic Media Coalition and other public interest groups urged the FCC to do more to address the communications meltdown in Puerto Rico and the U.S. Virgin Islands (see 1710040046). Chairman Ajit Pai, meanwhile, said he appointed a staff task force on hurricane recovery. Addressed to Pai, the letter also was signed by the Center for Media Justice, the Color of Change, Free Press and Public Knowledge.
Rural telcos pressed FCC officials for increased USF support and other changes to the subsidy program. Citing almost $1.5 billion in annual "unmet needs" under an "arbitrary' $2 billion rural carrier cap, the Small Company Coalition asked the FCC to tap over $8 billion in reserves to reduce contributions to the system and address the "shortfall" in funding support for small, rate-of-return carriers, in a filing posted Wednesday in docket 10-90 on meetings with Commissioner Brendan Carr and aides to Commissioners Jessica Rosenworcel and Mignon Clyburn. The SCC said Universal Service Administrative Co. audits cost about $250 million but led to only $8 million in recovery of questionable funds in 2016. It urged more focus "on demonstrably problematic programs and bad actors" and use of a "materiality" threshold. The group asked for "eliminating overlapping or outdated reporting requirements" and "raising awareness regarding the impact of shrinking" high-cost loop support.
FCC staff released a USF E-rate eligible service list (ESL) for funding year 2018, adopting two proposals it made to clarify language to assist applicants seeking support for on-premise network equipment, and regarding "the category of service that should apply to inside wiring between different schools or libraries sharing a single building." (Category One services support broadband connectivity to schools and libraries; Category Two broadband within schools and libraries.) "We add to the ESL the proposed clarifying note regarding the eligibility of on-premises Network Equipment with both Category One and Category Two functionalities," said a Wireline Bureau order Thursday in docket 13-184. "On-premises Network Equipment that has both Category One and Category Two functionalities is eligible for Category One support if it is necessary to make a Category One broadband service functional." The bureau also clarified that "applicants should classify inside wiring between two schools sharing a single building as Category Two services." It declined other proposals.